(a) whether the Government has assessed the capital investment required for the small and medium scale industries in the country;
(b) if so, the average annual investment required and made in the sector during the period from 2004-05 to 2008-09;
(c) the sources from which the said requirement was met indicating their contribution in terms of percentage; and
(d) the steps taken by the Government to enhance capital investment in the said sector?
MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) to (c): The micro, small and medium enterprises are set up by the entrepreneurs themselves
through various sources of finance as per their requirements. The estimates of annual average
investment during 2004-05, 2005-06 and 2006-07 (latest available) is Rs.1.59 lakh, Rs. 1.60
lakh and Rs. 1.61 lakh respectively. Since the medium enterprises were for the first time
defined under the Micro, Small and Medium Enterprise Development Act, 2006 which came into
force from 2nd October, 2006, information in respect of capital investment in medium enterprise
is not available.
(d): To facilitate the promotion and development of micro, small and medium enterprises
(MSMEs) and enhance capital investment in the sector, the Government has announced a ‘Policy
Package for Stepping up Credit to Small and Medium Enterprises (SMEs)’ in August 2005 which
envisages public sector banks to fix their own targets for funding MSMEs in order to achieve
a minimum 20 per cent year-on-year growth in credit to the MSME sector. The Government has
also announced in February 2007 a ‘Package for Promotion of Micro and Small Enterprises’ with
an objective to provide support in areas of credit, technology upgradation, marketing,
infrastructure, etc. Further, the Government has enacted the Micro, Small and Medium
Enterprises Development Act, 2006, which has come into force from 2nd October, 2006, for the
promotion and development of the MSMEs and to enhance their competitiveness. In addition, the
Government is also implementing several schemes/ programmes, which include the National
Manufacturing Competitiveness Programme and schemes relating to credit, infrastructural
development, technology upgradation, marketing, entrepreneurial/skill development, etc. All
these measures seek to facilitate the development of MSMEs and enhance capital investment
in this sector.